The National Company Law Tribunal (NCLT) approved a resolution plan of telco
Aircel, two years after the operator went down under a debt of Rs 20,000 crore and filed for bankruptcy.
Asset reconstruction firm UVARCL was the shortlisted buyer for Aircel's assets and according to people aware, NCLT
's Mumbai bench approved the plan but with some modifications.
ET broke the story online on Tuesday afternoon. Aircel, which declared bankruptcy in March 2018, for failing to repay debt of Rs 20,000 crore had received claims worth Rs 20,000 crore from lenders and a claim for a similar amount from operational creditors.
Deloitte was the resolution professional in this case.
Interestingly, UVARCL is also the selected buyer for
a few of
Reliance Communications' assets as well. The resolution plan of Aircel has seen opposition from the telecom department who may continue to take the fight to higher courts.
The Department of Telecommunications (DoT) had filed claims worth some Rs10,000 crore, of which only Rs2,000 crore was approved by Deloitte. DoT earlier had informed the dedicated bankruptcy court that a mere Rs 16.50 crore was earmarked for all operational creditors including DoT, which did not make the cut for the government.
The telco's most coveted asset is its spectrum. Aircel holds spectrum in Andhra Pradesh, Delhi, Karnataka, Mumbai, Rajasthan and Tamil Nadu circles in the 900 Mhz, 1800 Mhz and 2100Mhz bands. The spectrum, which
is valid until 2026 except for Tamil Nadu, should evoke interest from the buyers planning to expand their 4G base but over a 25% discount on the base price offered in last auction, executives have previously said. Aircel has previously told the NCLT that its spectrum is worth Rs 1,100-2,000 crore.